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key access products or regulatory tools by area



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key access products or regulatory tools by area

  1. Narrowband voice


  1. What is the level of interconnection tariffs for call termination with interconnection at the local, single and double tandem switch level?

    Interconnection services

    Call setup


    Per minute








    Peak

    Off-peak

    Peak

    Off-peak




    Local exchange







    0.3700

    0.1694

    Eve













    0.1334

    w/e

    pence

    0.0

    0.0

    0.2514

    0.1151

    Eve













    0.0906

    w/e

    Single tandem







    0.5233

    0.2396

    Eve













    0.1887

    w/e

    pence

    0.0

    0.0

    0.3555

    0.1628

    Eve













    0.1282

    w/e

    Double tandem short







    0.8912

    0.4080

    Eve













    0.3213

    w/e

    pence

    0.0

    0.0

    0.6055

    0.2772

    Eve













    0.2183

    w/e

    Double tandem medium







    1.1469

    0.5252

    Eve













    0.4135

    w/e

    pence

    0.0

    0.0

    0.7792

    0.3568

    Eve













    0.2809

    w/e

    Double tandem long







    1.4999

    0.6866

    Eve













    0.5408

    w/e

    pence

    0.0

    0.0

    1.0190

    0.4665

    Eve













    0.3674

    w/e

    Daytime: Mon-Fri 08.00-18.00 / Evening: Mon-Fri 18.00-08.00 / Week-end: all Sat & Sun

    Valid from 1 April 2005 until superseded by new price list.









  2. Are new entrant operators entitled to apply higher charges than the incumbent operator for termination services on their networks? If so, are these tariffs based on an application of the delayed reciprocity principle or can these tariffs be justified on the basis of a cost analysis?

Ofcom reviewed competition in the provision of fixed geographic call termination services in 2003. This review concluded that all operators who terminated fixed geographic calls had significant market power in doing so. As a result, Ofcom imposed obligations on all operators, which required them to meet reasonable requests for fixed geographic call termination and to do so on fair and reasonable terms, conditions and charges. In practice, most operators have chosen to set charges on the basis of a contractual agreement with BT, in which charges are set on the basis of BT’s costs.
In terms of a completely new entrant, they would, at least until such time as Ofcom carried out a market review in relation to the market for fixed geographic call termination on their network (if that was the defined economic market), be allowed to charge what they liked. Or at least they would, in theory. In reality, it is likely that Ofcom would receive a dispute should anyone propose to charge more than others.

  1. Is carrier selection and preselection implemented?

Yes, Carrier Selection and Carrier Pre-Selection are both implemented in the UK.

  1. What is the market share (revenue) of alternative operators in the fixed voice market?

The incumbent held a 63.7% share of the fixed voice telephony market (all fixed calls including internet, in terms of revenue) at 31 March 2004, down 0.8% on the previous year (Source: European Commission 2004 report on the implementation of the new EU regulatory framework).

  1. What is the level of interconnection tariffs for call origination at the local, single and double tandem switch level?

BT's interconnection rates as of 1 April 2005 are shown below. These were, at that point, all subject to regulation for these services, based on BT's market power. BT's 24 hour average pence per minute charges from that date were:

  • local exchange call origination: 0.1827

  • single tandem call origination: 0.2541

  • double tandem call origination has 3 prices based on distance

  • short (under 100km): 0.4254

  • medium (100-200km): 0.5445

  • long (over 200km): 0.7088

(Note - for all services, add 0.061 ppm if the call origination service is purchased with operator assistance).

  1. Is wholesale line rental (WLR) implemented? What proportion of active incumbent fixed lines are wholesaled through WLR?

Yes, WLR is implemented in the UK. As of end-August 2005, there were 600,332 residential WLR analogue lines in the UK (representing 3.1% of the incumbent’s (i.e. BT’s) fixed residential lines) and 795,472 business WLR analogue lines in the UK (representing 9.8% of BT’s fixed business lines), making a total number of 1,395,804 analogue WLR lines (equal to 5% of BT’s fixed lines).
BT’s WLR charges are cost-oriented. Currently, the residential WLR charge is £8.74 / month (excluding VAT), and the business WLR charge is £9.95 / month (excluding VAT). The charges for setting up WLR are: £1.41 (ex VAT) for transferring an existing line from BT (or another WLR provider), and £91.99 / line (ex VAT) if a new physical line needs to be installed. There are also separate charges for additional services. These are also required to be cost-oriented, and further details can be found at:

http://www.btwholesale.com/application?origin=spplParts.jsp&event=bea.portal.framework.internal.refresh&pageid=spplSubpartSummary&nodeId=navigation/node/data/service_and_support/pricing/sppl/36/Part6/navnode_8_11_1_1_36_6.
    1. Mobile


  1. What is the peak-rate fixed to mobile termination charge applied by the largest mobile operator in your country? 8.5 pence per minute or 11.19 eurocents per minute

    Peak time

    Off-peak time

    Comments

    Eurocents per minute

    Eurocents per minute

    O2

    O2

    Day
    Mon-Fri 08.00-18.00

    Eve(E)


    Mon-Fri before 08.00 & after 18.00

    Weekend(W): all day Sat and Sun


    Ofcom has set price regulation for 2G MTRs applicable from 1 Sept. 2004

    (GSM)

    Pence


    6.310

    (GSM)

    Eurocents

    9.29


    (GSM)

    Pence


    6.310(E)

    3.140(W)


    (GSM)

    Eurocents

    9.29

    4.62


    T-Mobile

    T-Mobile

    (DCS-1800)

    Pence


    8.900

    (DCS-1800)

    Eurocents

    13.10


    (DCS-1800)

    Pence


    4.000(E)

    4.000(W)


    (DCS-1800)

    Eurocents

    5.89

    5.89


  2. Is fixed to mobile termination subject to regulation? Is mobile to mobile termination subject to regulation? If so, please specify the regulatory conditions applied e.g. price control, non-discrimination.

Yes, price control and non-discrimination are imposed on both fixed to mobile and mobile to mobile termination.

  1. Where price regulation is applied, are prices required to be cost-oriented? Has a glide-path been applied, and if so, at what date are prices projected to reflect actual costs?

The charge caps are fixed and believed to reflect costs today, so there is no need for a glide path.

  1. Where non-discrimination is applied to fixed to mobile and/or mobile to mobile offnet rates, is the mobile operator required to demonstrate that it is not discriminating with respect to its own ‘internal’ onnet rates?

No.

  1. What are the market shares (by revenues) of the 2 largest mobile operators?

Vodafone: 29%.

O2: 23%.



  1. What is the price of a basket of average user mobile retail services (OECD methodology)?

44.8 EUR (10th Implementation Report, figure 56).

  1. Is one or more MVNO operator operational? If so, what is the MVNO market share of mobile revenues (or subscribers)? Is MVNO access subject to regulation?

The UK has a number of mobile providers that could be called MVNOs (although Ofcom does not define 'MVNO' specifically). The ones with the most subscribers (at the end of June 2005) are:

  • Virgin Mobile (c.4 million subscribers, or c.6.5% total UK subscribers)

  • Tesco Mobile (c.550,000, or 0.9% total subscribers)

  • BT Mobile (c.400,000, or 0.6% total subscribers).

In total, there are 6.7 million subscribers who are signed up to a company other than one of the 5 UK networks. This equates to about 11% of the total. New entrants are still emerging, such as easyMobile and ExtremeMob.
The UK does not have regulation mandating access for MVNOs. No UK MNOs have SMP in the market for wholesale access & call origination, so all MVNO agreements with MNOs are arranged on a commercial basis.
    1. Business services


  1. Are there any wholesale partial private line offers ("ppcs") in your country?

Yes. PPCs were first introduced in 2002, and the leased lines market review of June 2004 concluded that it was still appropriate to require BT to make available PPCs at bandwidths up to and including 155Mbits/s.

  1. Are PPCs required to be cost-oriented, and is the cost-orientation principle effectively applied?

Yes. PPC terminating segments are the subject of a price control, as well as a cost orientation obligation, and trunks segments (symmetric broadband origination) are required to be cost orientated.

  1. What are the tariffs offered (connection and rental) for PPCs for 2Mbits/s 2 km?

2,824 EUR (connection charges).

157 EUR (rental charges) (10th Implementation Report, figures 38 and 39).



  1. Are there any specific measures to prevent discrimination in the provision of ppcs and leased lines? e.g. KPIs

Yes, BT is prohibited from undue discrimination between PPCs and retail leased lines and is required to publish KPIs on a quarterly basis to enable Ofcom and its competitors to assess this.

  1. Do the leased line wholesale and PPC products include a Service Level agreement including delivery and restoration times and financial penalties for failure to meet targets?

Yes.

  1. Are there any restrictions applicable to the migration from leased lines to ppcs?

No.

  1. Is a Wholesale Ethernet Service (WES) available? If not, is it under consideration by the NRA?

Yes it is available.
    1. Broadband


  1. Is full local loop unbundling and shared access available?

Yes.

  1. What is the set-up and recurrent tariff charged for both full and shared ULL access?

    Full access

    Shared access

    Active loop:


    • One-off: £ 34.86 (50.30 EUR)

    • Annual: £ 80 (115 EUR i.e. 9.60 EUR per month)



    • One-off: £ 34.86 (50.30 EUR)

    • Annual: £ 15.60 (22.50 EUR i.e. 1.90 EUR per month)

    • Charges set by Ofcom on 16 Dec. 2004. Applicable from 1 Jan. 2005.

    • See Big Five Update No 54.

  2. Are associated facilities such as co-location required to be made available at cost-oriented rates? Has the NRA intervened to specify the rates and terms for the supply of these services?

Yes. Ofcom is currently in the process of setting certain co-location charges.

  1. What is the number of unbundled lines as a percentage of total DSL lines?

1% (ECTA Broadband Scorecard, July 2005).

  1. Do contracts for ULL and associated facilities include a Service Level agreement including delivery and restoration times and financial penalties for failure to meet targets?

Yes.

  1. What connectivity options (according to ERG classification) are available for ADSL bitstream?

Option 2: available 9%.

Option 3: available 57%.



Option 4: not available.

  1. What % of DSL lines are provided by the SMP operator’s downstream operating retail arm?

34% (ECTA Broadband Scorecard, July 2005).

  1. Do the wholesale broadband products include a Service Level agreement including delivery and restoration times and financial penalties for failure to meet targets?

Yes.

  1. Are there any restrictions on the migration from a resale ADSL offer to a bitstream offer to fully unbundled or shared loops?

No.

  1. Is a price squeeze test applied by your NRA in relation to wholesale DSL products and LLU? Does your NRA apply a price squeeze test across the whole value chain e.g. between different wholesale products in addition to between wholesale and retail?

No, not on an ex-ante basis. Such a test was conducted in 2002 ex-post.
Over the past few years, the entire Broadband value chain LLU-Wholesale-Intermediate-Retail has been assessed for margin squeeze.


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